Zoom laying off 1,300 employees, CEO to reduce salary by 98%

Video conferencing company Zoom announced Tuesday it will lay off around 1,300 employees to counter changing economic conditions and work habits.

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In a news release Tuesday, CEO of Zoom Eric Yuan announced that the Zoom team will be reduced by 15%, which is about 1,300 employees.

Over the past few years, Zoom has become an indispensable source of connection for businesses and individuals as well as a globally recognized brand. Whether you have been at Zoom since the beginning or joined us more recently, you’ve played an important role in our evolution, and that makes today’s announcement particularly difficult,” said Yuan.

One reason for the cut is the slowing demand for video conferencing services, according to Reuters.

During the COVID-19 pandemic, Zoom grew quickly as companies and consumers turned to videoconferencing software to connect with other people, whether it was for recreation, work, medical, or school, according to The Wall Street Journal.

Yuan also announced he would reduce his salary by 98% for the coming fiscal year, and will not take a corporate bonus, according to the news release.

The executive leadership team will reduce their base salary by 20%, according to Reuters.

“We worked tirelessly ... but we also made mistakes. We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities,” said Yuan.

According to Reuters, Yuan said that employees that are laid off will get 16 weeks of salary, healthcare coverage, and a bonus for the year.

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